You are here: Home - Investing - Experienced Investor - News -

Investors shrug off January blues, finds Lloyds survey

Written by:
UK investors have shaken off the January gloom, showing improving sentiment for the fourth month in a row.

The Lloyds Consumer Sentiment index is up 2.5% since December 2017 and 3.3% higher than this time last year. The index has been on a ‘topsy-turvy’ year, said Lloyds Private Bank, with sentiment rising and dipping with changes in the macroeconomic climate.

UK shares had lagged their global peers in the wake of Brexit, but have seen a noticeable improvement in January, increasing by 8.5% to 12.3%. Investor confidence in UK government bonds and UK corporate bonds both increasing by 2.9%. This may be partly a response to an improvement in sterling, which hit post-Brexit highs against the US dollar this week.

Investor sentiment in the US stock market continues to be strong, in spite of fears that it may be over-heating. Investors have also warmed to international shares, including the Eurozone (+2.2%), Japan (+3.0%) and Emerging Market (+4.4%).

The improvement in sentiment towards Emerging Markets comes after a strong year for the asset class, up 34.3% against January 2017. US shares were also strong, up 19.4%, led by technology names. Japanese shares were the other big winner, up 18.1%. UK shares show the biggest improvement month-on-month.

Markus Stadlmann, chief investment officer at Lloyds Private Bank, said: “Although UK and US shares both scored highest this month for sentiment, we see contrasting valuation scores between the two. In our view, despite some good growth signals emerging from the US where tax cuts should further support corporate growth in 2018, we currently think US equities are expensive. Conversely, we see UK equities – and also Emerging Market equities – as being cheap.

“A final thought: despite a mid-ranking performance score this month, Japanese equities are our ‘one to watch’ in 2018. The Japanese economy is in rude health, with less support now required of the central bank. Tellingly, the profit margins of Japanese corporates as a percentage of revenues are currently higher than their previous peak in the 1980s.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post: Mailbag: can I buy company shares for my boyfriend’s birthday?

Dear, my boyfriend is Nike-obsessed and rather than buy him another pair of trainers for his birthday, I thought...